Secrets to using a collection agency to collect debt

using a collection agency to collect debt

Many of our new clients who have been using a collection agency to collect debt in the past, often ask us why we are better than other agencies, and what our secret is.  Our answer is always the same in that our number 1 priority is to have the clients best interests at heart, and to recover as much of the debt as possible within as short a time as possible!

Its not rocket science if you are using a collection agency to collect debt. Yet many businesses fail to see the benefits and will continue to delay and delay, thinking they will eventually get paid, but often don’t for months on end (often years!). 

The message to debtors from our side is simple, either pay us within 7 days, or the matter will be moved to a legal process. The debt will then increase substantially incurring legal, compensation and statutory interest costs on top.  No-one wants that, and if your debtor is a “can’t payer” we can find a solution quickly.  If they are a “won’t payer”, then we can negotiate a settlement often within 3 months.

Preparation is the key to timely collections

It is these small procedural steps that you need to consider when using a collection agency to collect debt, making sure they are meticulous, prudent and firm in their approach to your customers.

Secrets to using a collection agency to collect debt

Even the government want you to get paid on time!

So we are here to help: here is a list of 3 procedures that you should be taking from your side to maximise chances of collection before you consider using a collection agency to collect debt:

  • Communicate: have you done everything to correspond with the debtor, in the right timeline?  Are they responsive?  Have you spoken to them and found out if there is a specific reason for non-payment?  If they are simply unresponsive, then you may want to try and escalation process.
  • Provide all docs:  does your customer have a copy of the invoice?  The number 1 reason for non-payment in business is that the debtor doesn’t have a copy of the invoice.  Make sure you email a copy of the invoice on day 1 of the collection process. Way before you ever consider using a collection agency to collect debt
  • Iron out disputes: another major reason for non-payment is a dispute with the creditor. You must ensure all avenues of negotiation are pursued before embarking on expensive court action.  If a matter goes to court and it is disputed, the costs of litigation can often outweigh the debt. This should be avoided at all costs.

Don’t delay debt collection

So we hope these tips can put you in good stead, if you are considering using a collection agency to collect debt.

There are many effective collection agencies operating in the UK, but you should always do the groundwork. Then you will have peace of mind that you have done everything you can to resolve the situation, and the debtor has been give chance to pay directly.

If you are struggling with finding a collection agency to collect debt and want to find debt collectors that can be trusted,  please don’t hesitate to email us enquiries@tauruscollections.com Or, give us a call on 01332 565 350 for a no obligation assessment of how we can help you improve your cashflow and debt collection rates.

Taurus Debt Collections and Recovery Logo

Privacy Policy Data Protection License Number (ICO no.) Z2530888. All content ©2018 Taurus Collections. Site built and optimised by Whirlwind.co Hosted in the cloud by: novacloud.co.uk

-->